After the toys update I lost 2000 hit points again despite equipping all the toys in my inventory.  Are they still working out the bugs?

It is probably not clear in the news post about the change in toys. You understood the part about needing to equip toys in your card deck. Toys no longer give HP for your hero, only attack bonus. 

You need to look at the new tab called 'sex pills' in your collection. It is between the 'deck' and 'toys' tabs. (Although they look more like potions rather than pills.)

In 'sex pills', there are 5 potions, coloured to match the 5 types of gems. The pink one is for Hero's HP, while the others are for boosting the attack of girls of the separate elements. After clicking the pink / health potion, you can upgrade it with viagara.

You can check how much viagara you have by looking in the 'items' tab.

It is suggested that you upgrade all potions evenly and leave some viagara for later, as you may need to use cards from different elements, when colosseum or world bosses are active.